ES Journal Archive (2006 - 2008)

It's High of Day ... and he might be right.

JJ

 

gap fill from the other day

http://finance.yahoo.com/q/bc?s=^GSPC&t=5d&l=on&z=m&q=l&c=

 

out half at 1468.75


stop to Be

 

HOD on high volume + pullback on low volume = bull flag?

 

What is the reasoning behind closing price gaps apart from statistical ones?

 

it was a point in the past where sellers were anxious to sell for less than the previous close so it represents a short term resistance.

 

Sorry, still don't get reasoning behind gap closures, what's the point of taking price to close gap?

 

triangle break out

 

Well within the gap the gap there is no resistance, a vacuum so price should hit the other end, above it vol's reason and trapped longs.

 

there cause a short term inefficiency that over time usually gets filled as the market corrects the inefficiency they created